Third Party Car Insurance

As per a draft notification issued by the Ministry of Road Transport and Highways (MoRTH) dated 29th Aug, 2018 purchasing a three-year bundled third party car insurance is mandatory if a person buys a new vehicle. However, existing car owners can continue to buy third party insurance cover having a validity of only one year. The base premium rates for Motor Third Party Insurance Cover have been proposed at Rs 2,094 for private cars below 1,000 cc, Rs 3,416 for cars (between 1000-1500 cc) and Rs 7,897 for cars exceeding 1500 cc.

The person (insured) who purchase the insurance policy is called the first party. The insurance company that provides insurance is called a second party and the property. Any person/vehicle that has been damaged while plying car on the road is called third party insurance.

Third party car insurance policy covers the policyholder’s legal liability. If the insured person’s vehicle accidentally leads to the death or disability of any third party person or damage to a third party property, the insurer bears the financial burden in such a scenario.

The 3rd party car insurance offers coverage for liabilities arising out of third-party damages/losses caused by the insured car in an accident. However, it doesn’t cover the own damages sustained by the insured car in an accident.

Third party car insurance covers your legal liabilities incurred, if any, because of protects your vehicle from losses due to damage, injury to or death of or damage to the property loss to of a third party caused by or arising out of the use of the insured vehicle in a public place. or person involving the insured person's vehicle. As stipulated in the Motor Vehicles Act 1988, all motorists It are required to have this cover before the vehicle is taken on public roads. is a or damage legal motor contract to protect the vehicle's owner against any unforeseen liabilities due to third party vehicle damages, property damages, physical injuries, disability and death. Third party insurance cover does not provide any coverage for the damage, if any, caused done to your own vehicle. As stipulated in the Motor Vehicles Act 1988, third party car insurance is a mandatory cover, and all motorists must be insured against liability to other people or property to avoid legal complications.
A car insurance policy consists of three parties - the First Party or the car owner who purchases the car insurance policy. Second Party or the motor insurance company that provides financial support in exchange for a car insurance premium. Third Party or any other person who may get injured or whose property may get damaged by the policyholder's car in an accident. Hence, third party car insurance covers third party liabilities caused by the policyholder's car. With a third party car insurance policy, you can also buy a personal accident cover worth ₹15 lakhs.

No, just third party insurance coverage is not enough. As per Motor Vehicles Act, 1988, along with third party insurance, personal accident cover is also mandatory. Therefore, HDFC ERGO's third party insurance policy includes personal accident cover for the owner or driver’s injury or unfortunate death.

It is wise to purchase comprehensive car insurance policy for your vehicle as it will provide coverage for own damage and third party liabilities. With third party insurance, you only get covered for third party person/property damages.

With third party insurance, you get coverage for the legal liability of third-party person/property damage. It also shields the policyholder in case a third party gets injured or dies because of the insured person’s vehicle.

No, you cannot skip buying third party car insurance coverage. It is a mandatory requirement as per Motor Vehicles Act, 1988. Even in a comprehensive insurance policy, third party liability is included.

After the accident, you need to intimate the insurance company within 36-48 hours. The inspection and settlement procedure begins right after you bring it to the notice of the insurance company. At HDFC ERGO, we offer you 100% paperless claim processing.

Every movable asset goes through daily wear-tear that causes its value to depreciate over time. Zero depreciation cover is an add-on that insures against such depreciation of your four wheeler.

Since a third party insurance policy does not accommodate add-ons, you cannot get zero depreciation cover under your third party car insurance.

The insurance company bears the major claim except for a small portion of the claim that the policyholder has to bear. This amount is called a deductible. But in the case of third party car insurance, there is no deductible involved since damage to the customer's four wheeler is not included in the policy.

Yes, you can buy third party insurance online. HDFC ERGO offers you zero documentation, instant third party car insurance policy. Visit our website to buy one in less than 3 minutes.

No, you cannot include add-ons in a third party insurance policy. To include add-ons in your policy, you can opt for a comprehensive car insurance policy for wide coverage.

If someone else is driving your car with valid driving license at the time of accident, then insurer will cover third party property/damage losses.